Inditex SA registers robust growth in 2007

31 Mar '08

3 min read

In FY 2007 Inditex continued its expansion strategy, aimed at consolidating sales in the leading European markets and at growth in areas with high potential, such as Eastern Europe and Russia, and the Asia-Pacific region. The Group opened 560 stores during 2007, reaching a total of 3,691 stores in 68 countries by 31st January. 80% of the new stores were opened outside Spain and the contribution to sales from international stores has risen to 62.5%, compared to 60.4% the year before.

Investments The overall investments totalled 942 million euros, 6% more than the 887 million euros of investment in 2006. Most of these investments were dedicated to the opening of new stores. Additionally CAPEX was dedicated to the start up of the Meco (Madrid, Spain) logistic platform operations and the capacity increase of the other logistic platforms.

Job creation A growth in activity has also translated into an increased workforce for the Group with 10,277 new employees, reaching a total of 79,517. Operating efficiency During 2007 optimisation of the operating efficiencies has continued to be a key part of the Group's strategy. There has been an improvement in the gross margin of 48 basic points, reaching 56.7% of sales. EBIT totalled 1,652 million euros and EBITDA 2,149 million, with a growth of 22% and 20% respectively.

Dividend Inditex' Board of Directors has agreed to propose to the General Meeting of Shareholders a 25% increase in the dividend relating tothe profit for FY 2007, which will involve a dividend of 652 million euros, 1.05 euros per share.

Social and environmental commitment during the year In July 2007 Inditex presented its shareholders with the Environmental Strategic Plan for 2007-2010 that supports actions in this area, which Inditex considers to be one of its strategic variables.

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